The APBN recorded a deficit of Rp401.8 trillion due to higher expenditures than revenues.
Despite the deficit, the government maintains a focus on fiscal discipline and economic growth.
By Falito Villienuve Tandra, Salma Farah Faiza, and Iman Satyo Adi
December 13, 2024 at 16:30 GMT+7
Indonesia’s State Budget (APBN) for November 2024 recorded a deficit of Rp401.8 trillion, representing 1.81% of GDP—below the full-year target of 2.29%. The shortfall arises from revenues of Rp2,492.7 trillion, achieving 89% of the annual target, against expenditures of Rp2,894.5 trillion, or 87% of the target. This gap underscores the challenges of aligning revenue generation with government spending.
However, the deficit remains within the limits set by the 2024 Budget Law, which allows a maximum shortfall of Rp522.8 trillion for the year. The figures reflect a managed fiscal approach, as the government continues to prioritize essential expenditures while maintaining fiscal discipline. This measured stance underscores efforts to navigate economic uncertainties without breaching the agreed deficit threshold, balancing the need for growth and stability.
Menteri Keuangan, Sri Mulyani di Istana Negara | Source: Kompas / Fika Nurul Ulya
The widening deficit in November reflects a notable disparity between revenue growth and expenditure. Revenue growth remained modest, increasing by only 1.3% year-on-year (YoY), hindered by mid-year challenges in tax collection. Key contributors, such as tax receipts, customs, and excise, showed limited growth, although non-tax revenues slightly exceeded their targets. In contrast, government spending surged by 15.3% YoY, driven by increased allocations for social programs and government transfers aimed at bolstering public welfare and economic resilience.
This significant rise in spending highlights the government’s proactive efforts to address pressing social needs, though it also placed additional pressure on the fiscal balance. Consequently, the deficit expanded by Rp92.6 trillion from October to November, underscoring the rapid pace of expenditure compared to relatively stagnant revenue performance. These trends, while challenging, align with the government’s strategic focus on addressing short-term socio-economic priorities, albeit at the cost of heightened fiscal strain.
Konferensi pers APBN KiTa Kementerian Keuangan | Source: Antara / Imamatul Silfia
Despite recording a deficit of Rp401.8 trillion (1.81% of GDP), the State Budget (APBN) demonstrates the government’s commitment to stimulating the economy and supporting public welfare. Minister of Finance, Sri Mulyani Indrawati, highlighted that state expenditures reached Rp2,894.5 trillion (87% of the target), while revenues stood at Rp2,492.7 trillion (89% of the 2024 target). Notably, the primary balance achieved a surplus of Rp47.1 trillion, indicating prudent fiscal management within the deficit framework.
Sri Mulyani emphasized that the deficit remains below the Rp522.8 trillion cap set in the 2024 budget law, at 76.8% of the target. Moving forward, the government underscored the importance of maintaining fiscal discipline and achieving growth goals, particularly in the face of global economic uncertainties to ensure sustainable financial management.
Sources:
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